Are Equities Still a Better Investment than Housing? [View article]
Your analysis misses something quite large! The family who chooses NOT to buy a home and solely invests in stocks needs to live somewhere! So they rent! So this supposed earning of 13.6% is reduced dramatically. Because they pay money for rent and renters insurance. This money earns 0% and reduces the total % earned well below 13.6%, probably approaching 8.6% although I'd agree (unless you are renting in Manhattan), still slightly above 8.6%. But certainly not 5 percentage points higher!
So please, before you write an article of 'fear' gather all the facts.
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Your analysis misses something quite large! The family who chooses NOT to buy a home and solely invests in stocks needs to live somewhere! So they rent! So this supposed earning of 13.6% is reduced dramatically. Because they pay money for rent and renters insurance. This money earns 0% and reduces the total % earned well below 13.6%, probably approaching 8.6% although I'd agree (unless you are renting in Manhattan), still slightly above 8.6%. But certainly not 5 percentage points higher!
Nov 18 13:42 pm
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All Comments by Sperry8 »Are Equities Still a Better Investment than Housing? [View article]
So please, before you write an article of 'fear' gather all the facts.